A telex release bill of lading is a copy of a bill of lading issued by a shipping company or its agent, marked “Telex Release.” It is essentially a derivative of the ocean bill of lading.
In this article, Weefreight will provide a detailed explanation, hoping it will be helpful.
Application Scenarios for Telex Release Bills of Lading
Short-sea Shipping: On short-sea routes, such as those between China, Japan, and South Korea, and Southeast Asia, cargo may arrive at the destination port sooner than the original bill of lading is mailed to the consignee due to shorter shipping times. To avoid the “goods waiting for bills” scenario, which results in cargo being held up at the destination port and incurring increased port and storage fees, a telex release bill of lading is suitable.
High Trust Between Trade Parties: When the buyer and seller have a long-term, stable relationship, the importer has a good reputation, and the exporter has full confidence in the importer’s ability to pay on time, a telex release bill of lading can be used. This improves cargo delivery efficiency and shortens trade cycles.
Emergency Delivery: For urgent deliveries, such as trade show samples or urgent replenishment, telex release of bills of lading can save time, allowing consignees to pick up goods as quickly as possible, thus meeting urgent market demands.
Countries That Do Not Accept Freight Forwarder Bills of Lading: Some countries, such as some in South America, only accept shipowner bills of lading. Telex release of bills of lading can mitigate the risk of bill of lading substitution and ensure smooth delivery of goods to consignees.
Risk Mitigation Methods for Telex Release of Bills of Lading
Securing Payment: The bottom line for telex release of bills of lading is “payment in full.” For T/T customers, the exporter must confirm the final payment before releasing the bill of lading. For credit customers, a clear payment period and written agreement must be in place before releasing the bill of lading. Avoid releasing the bill of lading before payment has been received, as this can lead to a loss of both money and goods.
Choosing the Appropriate Trade Terms: CIF or CFR are preferred, as these terms give the exporter control over the transportation of the goods, reducing the risk of collusion between the carrier and the importer to release the goods without bills of lading. If FOB terms are chosen, the importer’s designated freight forwarder may present certain risks, so exporters should exercise caution.
Review the Partner’s Creditworthiness: Before using a telex release bill of lading, exporters should fully understand the importer’s business operations and creditworthiness. This can be done through a professional credit investigation agency or by evaluating past transaction records with the importer. Furthermore, it’s important to select a reputable carrier, such as a large shipping company, to mitigate operational risks.
Clear Operational Procedures and Responsibilities: When applying for a telex release bill of lading, exporters must submit a clear and accurate telex release application to the carrier or freight forwarder and retain relevant emails, documents, and other evidence. The telex release application should include the bill of lading number, cargo information, and consignee information. Furthermore, the responsibilities and obligations of all parties involved in the telex release process must be clearly defined to avoid unclear responsibilities in the event of disputes.
Retain Relevant Evidence: During the telex release process, exporters must retain all relevant documents and records, such as the telex release guarantee, telex release confirmation documents, and emails with the carrier and importer. This evidence can serve as crucial evidence in the event of a dispute, safeguarding the exporter’s legitimate rights and interests.
Consider purchasing export credit insurance: Exporters can consider purchasing export credit insurance to mitigate risks such as consignee non-payment or default. If risks arise, exporters can file a claim with the insurance company to mitigate their losses.
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